Biden Insists the Economy Is ‘On the Right Path’ After 2 Negative GDP Quarters

President Joe Biden says the economy is on the “right path” despite having two consecutive quarters of negative growth. In a statement on Thursday, Biden said, “Coming off of last year’s historic economic growth – and…

Bradley CortrightJul 28, 20223 min read

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On Thursday morning, the latest gross domestic product (GDP) report found that the Economy

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In a handout released last week, the White House said, “While some maintain that two consecutive quarters of falling real GDP constitute a recession, that is neither the official definition nor the way economists evaluate the state of the business cycle.”

“Instead, both official determinations of recessions and economists’ assessment of economic activity are based on a holistic look at the data—including the labor market, consumer and business spending, industrial production, and incomes,” it continued. “Based on these data, it is unlikely that the decline in GDP in the first quarter of this year—even if followed by another GDP decline in the second quarter—indicates a recession.”

Finally, it stated, “Recession probabilities are never zero, but trends in the data through the first half of this year used to determine a recession are not indicating a downturn.”